Summary
During the last few years, Critical Illness Insurance hasn’t enjoyed a good press. Consequently, its significance is very much miscalculated. This article stresses just how crucial critical illness insurance cover actually is.
Statistics now show that one in four of us will be ill with some type of cancer through out our lives. And it is skin cancer that has particularly contributed to this growing problem .
Whilst numerous people do beat cancer, its seriousness undoubtedly has an enormus bearing on the patients life and employment. Nevertheless, only 11% of the United Kindom’s protected themselves for a life threatening illness despite the availability of critical illness cover to expressly help in such situations.
Critical Illness cover is turning out to be increasingly vital. A study from Lloyds reinsurance, who are expert re-insurers, has shown that the amount of critical illness claims has gone up by by twenty four per cent during the last 12 months.
Nearly all financial specialists will inform you that Mortgage Insurance is a necessity if you have a mortgage or dependants. But a life insurance policy settles only if the policyholder were to die so what happens if you’re taken seriously ill and can’t work?
progress in health knowledge indicate that people are now much more likely to recover from illnesses such as cancer, strokes and heart disease than 15 years ago. But surviving is not really quite the same as being fit enough to resume your career. Lots of people recover from the condition, but have to take a less stressful job or retire. As a result their income dives. Consequently, financial advisers say that critical illness policies should be a good deal higher up on people’s list of insurance priorities. They consider it as extremely important rather than an option.
As one expert put it, “Unlike life insurance, critical illness cover pays out not if you die but if you contract an sickness. With Critical Illness Cover there is also a far greater level of claims because we’re all living longer.”
With Critical Illness Insurance, immediately the insurance holder is diagnosed with a critical illness, the policy pays out the complete insured value as a tax-free lump sum. Providing the insurance cover is adequate, this lump sum can supply the means to pay off any debts and the mortgage. It may perhaps be invested to provide the family with an regular income. Even though you’re not required to retire because of serious illness, you should be at least sufficiently financially secure to take extended leave or work part-time. There will not be any restrictions as to how you use the money so you may prefer to put the money towards medical treatment. Should you have to claim, critical illness cover provides a lump sum that gives you the flexibility to take whatever steps you need to take.
The particular conditions covered by critical illness policies does change between insurers and it’s vital to find the policy that suits you best. Do not just go for the cheapest. For example, many policies insure you for the onset of Alzheimer’s but with insurance company, this cover stops once the policyholder reaches sixty. With other insurance policies cover ceases at the age of sixty five. Some insurers will cover you against being contaminated with Human Immunodeficiency Virus (HIV) if you are assaulted and other insurers will cover you if the HIV infection is contracted during a blood transfusion. To a lot of people, these may sound like ”petty details”, but with critical illness insurance, it is so important to make sure the details are right.
Like many forms of life insurance, the younger you are when you take out a critical illness insurance cover the lower the price will be. For instance, if a non-smoker were to take out a 25-year policy at the age of 30, the monthly payment would be around 18 pounds 90 pence. This jumps to 36 pounds 40 pence if the same person delayed taking out the policy until they were 35 If you wait until you are forty, this increases to £36.40p.
It is a fact that these days a growing number of single 25 to 35 year olds do not have partners who would support them should they become critically ill. Young women, particularly, should contemplate taking out critical illness insurance as data shows that they are much more likely to make a claim than males. The report from RGA Reinsurer Company found that nearly sixty per cent of all claims from ladies were from under 45 year olds compared with just forty one per cent with men. But the fact is that lower than 32% of all critical illness policies started by 18 to 34 year olds are bought by ladies.
The claims also expose a man woman divide. Ladies account for 56 per cent of all cancer claims and 65% of multiple sclerosis claims. On the other hand, 90 per cent of heart attack claims are from males.